Feeds

Warner faces 14 download overcharging cases

Stock exchange filing

Next gen security for virtualised datacentres

Documents filed with the Securities and Exchange Commission on Friday reveal that Warner Music Group is facing 14 separate legal actions relating to the pricing of downloads.

In December last year and February this year the company received requests for information from New York Attorney General Eliot Spitzer. In late February it received a Civil Investigative Demand as to whether pricing of downloads breaks the Sherman Act.

The filing says Warner has been named in 14 cases - eight in California, five in New York, and one in Washington DC. It expects the cases to be consolidated into one. Although, thanks to iTunes, the US price of 99 cents per track has become an "industry standard", several competition authorities have questioned how this price was arrived at.

The company warns that any legal action, "regardless of the merits of the claim, could be costly and divert the time and resources of management".

The filing says the recorded music industry has had an unstable five years. It says: "The industry-wide decline can be attributed primarily to digital piracy."

Warner is also facing two anti-trust cases filed by independent music labels over its radio promotion behaviour - the company settled an investigation into radio promotion by Attorney General Spitzer in November and paid $5m to charity.

The filing also warned that Warner Music's outside auditors have identified a "material weakness" in the way the company works out domestic royalty payments. The company has started work on integrating different systems in use, but warns that there remains a "remote likelihood that a material misstatement...will not be prevented or detected".

Read the whole filing here.

It also emerged over the weekend that EMI is likely to increase its offer for Warner to $4.4bn and offer a higher percentage of cash. Warner last week rejected EMI's offer of $4.2bn for the company.

More from the Mail on Sunday here.®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.